Press Round Up: Bitcoin, Marijuana Stocks, A Weakening Economy

Peter Schiff has been mentioned often in the press in the last few days. Here's a summary of the most relevant article:


Peter Schiff States That Bitcoin Has Less Utility Than Pot - in U TODAY

Marijuana Stock Crash Could Affect Bitcoin Price, Peter Schiff Suggests - in International Business Times

Peter Schiff: Recession So Bad Coming, US Doomed to Default on National Debt - in Money and Markets

On a recent podcast episode, Peter Schiff told investors that the U.S. Economy is getting sicker,

“The economy is getting sicker. And that’s what the central banks are doing when they cut rates and they print money — they’re actually making the underlying economy sicker, even though it doesn’t look sicker because they’re just measuring the spending that goes on and they’re ignoring the debt that’s behind it.”

Market Update: Gold, IPO Market, Bitcoin

The main reason Gold is not getting a bigger boost from QE4 is that traders expect the markets to react the way they did to QE3. But when the Fed did QE3, markets believed it was the last QE, and that the Federal Reserve had an exit strategy. But QE4 is open-ended and exit is impossible! 

Related articles: Serbia Joins Central Bank Gold-Buying Spree

IPO Market and Stock Market Bubbles 

If you think popping bubbles are going to be contained to the IPO market or to the pot stocks, no. All of the bubbles are going to pop, including the total bubble in the US stock market overall.

Bitcoin and Pot Stocks

Lots of Bitcoin bugs criticized my tweet warning that the bursting of the pot stock bubble could be a harbinger of doom for Bitcoin as well. I am not comparing Bitcoin to pot. You can smoke pot and get high. You can’t do anything with Bitcoin. The similarities are the bubbles!

Creating Demand For Gold

The new head of the European Central Bank (ECB) Christine Lagarde believes she can create jobs by destroying savings. But jobs come from savings. Jobs need capital, and capital investment is funded by savings. When you destroy savings you also destroy jobs! All Lagarde will create is demand for Gold!

Market Update, Wealth Tax & Bitcoin

Market Update: US Dollar Index, US Stocks & Gold 

The U.S. Dollar Index closed a down week on the lows, while 30-year Treasury yields closed an up week near their highs. The dollar and bonds falling in tandem is a good sign that the bubble has popped! This is bearish for stocks and very bullish for gold.

Bitcoin: Bearish Chart 

The Bitcoin chart looks horrible. Not only does the flag that followed the recent breakdown project a move to $6K, but we are close to completing the right shoulder of a head and shoulders top, with a $14K head, and neck line just below $8K, that projects a collapse to below $2K!

Wealth Tax: Impact On Startup Capital 

If an unconstitutional wealth tax is passed, startup capital will be extremely hard to come by. What wealthy investor would want to put money into an illiquid private investment that is subject to annual appraisal and taxation, even if the investment itself never produces a gain? 

AOC Endorses Sanders 

AOC has endorsed Sanders for President. I guess Warren pretending to be a "capitalist to her bones" was too much for the unabashed socialist. If this propels Sanders to win the nomination, this is bad news for America, as he is left of Warren and even more likely to beat Trump!

The Federal Reserve Resumed QE

Don’t confuse this with quantitative easing (QE) when the Federal Reserve was buying $85 billion a month of Treasuries, because this is no way quantitative easing (QE) except, of course, that’s exactly what it is.

A Huge Bell Ringing On Wall Street

If investors are no longer willing to finance money-losing companies, if that type of speculative fervor has come to an end, this is a huge bell ringing on Wall Street.

Further reading: The Plight of the Unicorn: The Bubble Bursts 

"WeWork’s aborted IPO may come to mark the end of the current “unicorn” bubble the way the scuttled merger between Yahoo and eBay signaled the start of the dotcom crash in 2000. Having become CEO of Nasdaq in 2003, I saw up close the damage caused by the growth-over-profits philosophy in that earlier era, and WeWork’s spectacular fall – from the year’s most anticipated IPO to a company with a speculative-level credit rating that may run out of funds within a year – rings many bells.”